CUNA Releases May Economic Update

June 9, 2023

June 9, 2023
Washington, D.C.

CUNA Senior Economist Dawit Kebede provides a macroeconomic and credit union forecast for 2023 in the May 2023 CUNA Economic Update.  

Highlights from the most recent update include:  

  • Economic growth: CUNA economists forecast that the economy will increase by 1% this year and 1.5% next year. 
  • Inflation: Inflation is slowing down but remains elevated above the Federal Reserve’s target.  
  • Labor market: Labor demand is still strong but declining compared to previous months.  

“After the failure of some banks, it’s not only demand for loans that is going to be impacted, but supply of credit is also going to be tight … Standards are tightening and demand is also falling for commercial, industrial and household loans.” – Dawit Kebede 

Credit union forecast: 

Savings growth is expected to grow 4% this year and 5% next year. 

Loan growth will slow down relative to last year, but will remain close to the long-run growth trend.  

Liquidity will tighten further in 2023 with the loan-to-savings ratio rising by another 2.8 percentage points to 84.3% by year-end. 

“We are forecasting inflation would continue to slow down and probably reach 3.5% by the end of the year. Still, above the Fed’s target of 2%, but maybe next year it will come down to where the Federal Reserve wants it to be. In the process, the unemployment rate would trend up a little bit to 4% and that's also consistent with prices coming down … That’s our forecast for year-end. No other further increases coming this year and probably when inflation starts to go down next year rates will start to go down.” – Dawit Kebede  


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Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit To find your nearest credit union, visit

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